Black Tea Extracts Market Size, Share & Trends Analysis Report By Form (Powder, Liquid, Encapsulated) By Product (Hot Water Soluble, Cold Water Soluble), By Application, By Region, And Segment Forecasts, 2024 - 2030

Report Overview

The global black tea extracts market size was valued at USD 8.09 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 3.3% from 2024 to 2030. The marketgrowth is attributed to the increasing number of chronic diseases across the globe, which boosts the demand for black tea for its antioxidant properties. Furthermore, black tea is an easy-to-make, low-calorie, non-sweetened energy drink that is driving the demand in the market. The consumption of black tea reduces the risk of cancer, lowers blood sugar levels in the body, reduces the risk of stroke, and helps maintain blood pressure.

Recently people have become more conscious about their health owing to changing trends in drinking tea. Now, people started to drink black tea as it provides various health benefits. About 84% of people recently consume black tea worldwide, which surges the demand for black tea in the food and beverage industry. Black tea is an easy-to-make, convenient, and affordable beverage, which is the main reason for its mass production and consumption worldwide.

Black tea is commonly used in the food and beverage industries as well as in the cosmetic industry. Black tea contains caffeine and antioxidants, which help in increasing skin hydration, reduce puffiness on the face, and reduces aging signs. Black tea is a widely used ingredient in cosmetic products such as under-eye creams, serums, and skin products. Black tea is used to make various cosmetics products as it helps to reduce the roughness of skin, and reduces wrinkles and fine lines. The manufacturers make creams, moisturizing lotions, tonics, shower gel, hair products as well as cosmetic facial masks with black tea being their main ingredient, and it further increasing the adoption of black tea in the cosmetic industry.

Form Insights

The powder form dominated the market and accounted for a revenue share of 44.3% in 2023. The demand for powdered black tea extracts in the cosmetics industry is high owing to the rising usage of organic & personal care products. Furthermore, with increasing preference for convenient and nutritious ready-to-drink options, the powder form of black tea extract products is mostly demanded in various beverages. The product is highly demanded as it is easy to manufacture and can be transported across the globe.

The encapsulated form is expected to grow at a CAGR of 3.3% during the forecast period. Encapsulation improves the stability and shelf life of the product; it protects black tea extracts from direct contact with nature. Encapsulation allows dosage control and the amount of black tea extract per serving. Encapsulation improves application versatility. The increasing demand for encapsulated products in beauty supplements and weight loss formulas is projected to boost market expansion.

Product Insights

Hot water soluble accounted for the largest revenue share of 57.1% in 2023. Hot water soluble is convenient for creating instant hot tea beverages. The black tea extracts easily dissolve in hot water, allowing consumers to enjoy a quick cup of black tea, with numerous health benefits such as a rich antioxidant and reduced risk of chronic diseases. A large number of people use black tea as a dietary supplement as it is a zero-calorie hot beverage. Hot water soluble extracts allow manufacturers to create tea bags or instant tea mixes which gained instant popularity.

Cold water soluble is expected to register the fastest CAGR of 3.3% during the forecast period. Cold water soluble gaining traction in recent years as there is a shift in consumer preference from hot soluble to cold water soluble as they are quite refreshing. Cold water-soluble extracts allow manufacturers to be more creative with cold tea flavors and functional beverage categories. Cold water soluble extracts might find applications in some cold food products such as yogurt or ice cream, adding a subtle tea flavor and potential health benefits. The warmer climatic conditions demand for cold-water soluble extracts is also expected to fuel faster growth in this segment over the coming years.

Application Insights

The beverages segment dominated the market with a revenue share of 33.0% in 2023. The consumers are highly interested in versatile and convenient beverage options and black tea extracts serve that purpose. Black tea is a well-established traditional beverage with many health benefits. Black tea is a ready to drink beverage quite refreshing to consume and is perfect for busy lifestyle. It is a flavorful, quality product with a consistent taste. Compared to other beverages black tea is the most cost-effective beverage option for manufacturers. Black tea extracts are readily soluble in hot or cold water, this versatility and ease of use the beverage driving the market growth.

The functional food segment is projected to grow at a significant CAGR of 3.6% over the forecast period. Black tea extracts have a variety of health benefits that complements the functional food industry. Black tea extracts provide various health benefits, they are rich with antioxidants, which can help reduce the risk of chronic diseases such as heart disease and cancer. Black tea extracts mayimprove cognitive function, memory, and focus, reduce stress, and also contribute to digestive health. Black tea extracts may offer application versatility in the functional food segment. They can be used as functional beverages, dietary supplements and in bakery products.

Regional Insights

Asia Pacific black tea extracts market dominated the market with a revenue share of 65.6% in 2023. Countries in the region such as China and India have a rich history of consuming black tea, giving them familiar of its possible advantages. Asia Pacific has multiple tea processing plants that enable the cost-effective production of black tea extracts. Due to the advancement of economies in the region, individuals have more financial resources to invest in health-focused products such as extracts of black tea. The preferences of customers are shifting towards ready-to-drink beverages, and are expected to increase the production of black tea extracts in the coming year. Many businesses are focusing on adopting innovative methods to create customized products for the end users also driving the Asia Pacific region growth.

India Black Tea Extract Market Trends

India's black tea extract market is expected to grow rapidly in the coming years owing to India being the world’s largest producer and consumer of black tea. Indian states such as Assam, Darjeeling, and Nilgiri are the biggest manufacturers of black tea extracts. India has a well-established tea-processing infrastructure and black tea extract production.

The North America black tea market is growing as the busy population of the region appreciates the convenient options of black tea extracts such as hot water soluble extracts. Black tea is a ready-to-drink beverages that offer functionality beyond just hydration. It is enriched with antioxidants, provides a natural source of energy, and reduces stress. The consumers prefer natural ingredients over synthetic additives with a good taste and black tea extract is the most affordable option driving the North American region.

U.S. Black Tea Extracts Market Trends

The U.S. black tea extracts market dominated the North America market with a significant market share due to the perceived benefits of black tea extracts as they are rich in antioxidants and reduce chronic disease risk. U.S. consumers are highly health-conscious, seeking out functional ingredients with perceived health benefits.

Europe Black Tea Extracts Market Trends

Europe's black tea extracts market was identified as a lucrative region in 2023. Europe region has a strong black tea consumption tradition. Countries such as UK and Germany have a huge preference for black tea as their go to beverage. The European countries have strict regulations on food additives and black tea extracts ensure a high standard of quality and safety. Consumer preference and continuous innovation in food and beverage products are driving European region in black tea market.

The UK black tea extract market is expected to grow rapidly in the coming years as the UK population leads busy lives, and convenient food and beverage options are highly popular. UK consumers are very health-conscious and interested in functional ingredients and black tea extracts serve the purpose of a functional beverage.

Key Companies & Market Share Insights

Some of the key companies in the black coffee extracts market are Synthite Industries Ltd., Martin Bauer Group, AVT, and Phyto Life Sciences P. Ltd. Companies in the market are focusing on the customer base to gain a competitive edge in the industry. Therefore, key players are taking several strategic initiatives, such as mergers and acquisitions, and partnerships with other major companies. 

• Synthite Industries Ltd. is an Indian extraction firm that focuses on plant-derived ingredients for flavor and fragrance. The company offers a wide range of products such as roasted coffee, medium roasted, natural coffee emulsion, black tea aroma (liquid, encapsulated) green tea extract, and others. Synthetic processes all types of teas and coffees: green tea, black tea, green coffee beans, and roasted coffee beans (arabica and robusta).

• AVT Natural is a producer of plant extracts and natural ingredients for the global food, beverage, animal nutrition, and nutraceutical industries, with a vertically integrated manufacturing process. They provide a wide range of products black coffee extracts, green coffee extracts, coffee powder, coffee premixes, and various tea, dairy products, essential oils, functional and nutraceutical extracts.

Recent Developments

• In May 2023James Finlay Limited, a global supplier of coffee, tea, and botanical ingredients and, sold its James Finlay Kenya tea estates business to Browns Investments PLC. Finlays selected Browns Investments as approved buyers as they are known for their legacy of guiding its tea estates to continued growth.

Black Tea Extracts Market Report Scope

Segments Covered in the Report

This report forecasts revenue & volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global black tea extracts market report based on form, product, application and region:

• Form Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • Powder

  • Liquid

  • Encapsulated

• Product Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • Hot Water Soluble

  • Cold Water Soluble

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Functional Food

  • Beverages

  • Cosmetics

  • Beauty Supplements

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • South Africa